how to avoid financial risk

Avoiding the Risk Aversion from Other’s Influence

havenifa

havenifa


Posted on: 10th February 2021

As human beings we are highly susceptible to influence – it shapes everything we do and it is usually based on something we see, hear or get wind of through other people’s own behavioural reactions and experiences. But sometimes, we can be lead to danger when it comes to our money if we do not know how to avoid financial risk. 

In that, we tend to feel what happened to someone in their circumstances will also affect us on our own, even if they are completely different. This in turn turns our rational thinking into a more summative one which prevents us from forming our own opinions and experience on the subject.

Bad Experience = Bad Advice

This can be anything from where someone has bought a product online, to where they ate lunch to where they received financial advice. Each person’s experience is shared when bad, usually to deter people from seeking it themselves, without a full examination of how that person’s circumstances or personal tastes affected it. This in turn triggers emotional triggers in those who actually want and require the product or service.

With regards to independent financial advisors in Manchester, they tend to always take a coaching role with clients in order to build trust and peace of mind, which helps in the current marketplace instability to be sure you are making positive steps with your investments.

Fueled Fear

With Brexit and the Pandemic fueling even more uncertainty and fear within individuals, the spread of unconscious behaviours and emotional triggers are at an all-time high where receiving even the smallest piece of negative advice can make people steer well clear of what they require, even with the negative connotation being nothing to do with their own personal circumstances.

When engaging an IFA, it can be a battle to unravel your implanted thinking from the internet, the media or even the people you work with in regards to your own financial situation. Understanding that one person’s mistakes or circumstances do not affect your own is a major milestone to get over, and in talking with the best independent financial advisors in the UK you begin to see where misinformation has potentially swayed your thinking.

The Help You Need from the Questions you Ask

What is apparent upon working with a trusted IFA partner is that your financial well being is what they are employed to maintain, and they advise you of the most sensible and financially appropriate paths to take. It always comes down to yourself which path you want to take and an advisor will give you the heads up on the risks you open yourself up to on them.

This is why when listening to the comments from a third party you should not be dissuaded, but in fact, just have more questions to ask going in. For more information on getting the best financial advice and guidance, talk to the team at Haven IFA today if you would like to know how to avoid financial risk.